Thursday, December 8, 2022
 

Elon Musk Claims Twitter Violated the Agreement in a Third Letter

  • Under Elon Musk’s $44 billion acquisition proposal, Twitter said payments to a whistleblower did not violate any agreements.
  • Musk’s lawyers said Twitter’s failure to seek his consent before paying $7.75 million to a Twitter whistleblower violated the merger agreement.
  • Elon Musk and Twitter will go on trial on October 17, in Delaware.

Twitter said that payments to a whistleblower did not breach any of its obligations under the $44 billion acquisition proposed by Elon Musk after the billionaire sent a third letter to try to call off the deal. A copy of the letter was also filed with the SEC.

On Friday, Musk’s lawyers said Twitter’s failure to seek his consent before paying $7.75 million to Peiter Zatko, a Twitter whistleblower, violated the merger agreement. 

In the letter sent by Musk’s lawyers, the payment, which included $7 million for Zatko, “cannot be cured,” and Musk is “not required” to complete the merger.

Musk’s legal team first filed a notice on July 8 with the SEC to terminate the Twitter acquisition, alleging that “Twitter has not complied with its contractual obligations”. After that, A second letter on Aug. 29 mentioned the allegations made by Zatko as another reason why the deal should be void.

But, Twitter said it intends to enforce the agreement and close the transaction on the price and terms agreed upon with Musk. Twitter responded,

The case with both your July 8, 2022, and August 29, 2022, purported notices of termination, the purported termination set forth in your September 9, 2022 letter is invalid and wrongful under the Agreement.

Elon Musk and Twitter will go on trial on Oct. 17 in Delaware to resolve Musk’s attempt to cancel his acquisition of the company unless they reach a settlement first.

Elon Musk is the CEO of Tesla and a crypto enthusiast. Musk has cryptocurrencies like Bitcoin, Ethereum, and DogeCoin. Musk also supports Doge Coin, meme crypto, claiming it to be the people’s crypto in a Twitter post.

  • Under Elon Musk’s $44 billion acquisition proposal, Twitter said payments to a whistleblower did not violate any agreements.
  • Musk’s lawyers said Twitter’s failure to seek his consent before paying $7.75 million to a Twitter whistleblower violated the merger agreement.
  • Elon Musk and Twitter will go on trial on October 17, in Delaware.

Twitter said that payments to a whistleblower did not breach any of its obligations under the $44 billion acquisition proposed by Elon Musk after the billionaire sent a third letter to try to call off the deal. A copy of the letter was also filed with the SEC.

On Friday, Musk’s lawyers said Twitter’s failure to seek his consent before paying $7.75 million to Peiter Zatko, a Twitter whistleblower, violated the merger agreement. 

In the letter sent by Musk’s lawyers, the payment, which included $7 million for Zatko, “cannot be cured,” and Musk is “not required” to complete the merger.

Musk’s legal team first filed a notice on July 8 with the SEC to terminate the Twitter acquisition, alleging that “Twitter has not complied with its contractual obligations”. After that, A second letter on Aug. 29 mentioned the allegations made by Zatko as another reason why the deal should be void.

But, Twitter said it intends to enforce the agreement and close the transaction on the price and terms agreed upon with Musk. Twitter responded,

The case with both your July 8, 2022, and August 29, 2022, purported notices of termination, the purported termination set forth in your September 9, 2022 letter is invalid and wrongful under the Agreement.

Elon Musk and Twitter will go on trial on Oct. 17 in Delaware to resolve Musk’s attempt to cancel his acquisition of the company unless they reach a settlement first.

Elon Musk is the CEO of Tesla and a crypto enthusiast. Musk has cryptocurrencies like Bitcoin, Ethereum, and DogeCoin. Musk also supports Doge Coin, meme crypto, claiming it to be the people’s crypto in a Twitter post.

 

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